Tuesday, March 5, 2013

Board may not impose fees or fines not specifically included in covenants

Fairfax County’s Olde Belhaven case set a Virginia precedent that HOAs cannot claim powers, such as imposing fees or fines, that are not specifically included in their covenants.

"It's a game-changer" for perhaps 10,000 condo and homeowner associations across Virginia, according to Pia Trigiani, attorney for Southampton Condominium.

Southampton covenants do not specifically permit the Board to impose fees or fines in addition to the monthly assessment.

Furthermore, even if a fee or fine were specifically included in the covenants, it must be imposed after the homeowner has had an opportunity to present his case.

In at least one instance, the Board issued a collection notice for an unpaid assessment (almost 4 months after it became due), plus a $50 "late fee", without any prior notice to the homeowner that an assessment had not been received.

Another homeowner was fined several hundred dollars for having a non-standard door, and was threatened with continuing fines. He finally installed a standard door before selling his condominium.

§ 55-79.84 of the Virginia Condominium Act does permit a "lien on every condominium unit for unpaid assessments levied against that condominium unit".

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